Caterpillar Rides AI Wave to Record Bookings

Caterpillar's stock has surged more than 70% in the past year, making it one of the best industrials stocks to buy right now. The company recently reported its strongest quarter in history, with revenue increasing 24% to $20.5 billion from the previous year.

The construction and heavy machinery company's backlog has grown to a record $72 billion, up $35 billion from last year alone. This significant increase is largely driven by AI-related demand, which is providing multiyear revenue visibility and reducing the company's dependence on traditional cyclicality.

Caterpillar's profit per share reached an astonishing $7.77 in this latest quarterly report, reflecting a real shift in the company's core business. Analysts largely agree that the stock has plenty of room left to run, with an average price target of $975, currently trading around $800 per share.